Salonserve Hair & Beauty Supplies Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Salonserve Hair & Beauty Supplies Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 03003903 . The registered office is Lexicon House, Station Road, Irthlingborough, Northants, NN9 5QF.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Significant judgements and estimations

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates if necessary. It also requires management to exercise judgement in applying the company accounting policies.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

2.4. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 10 years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	Straight line over 50 years
Plant & Machinery	25% on reducing balance

2.6. Leasing and Hire Purchase Contracts

Assets acquired under hire purchase contracts are included in tangible fixed assets are depreciated over their estimated useful lives. The obligations net of future charges are included in creditors.

Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective rate of interest method. So as to achieve a constant rate of interest on the remaining balance of the liabilities. Finance charges are deducted and charged to the profit and loss when they are incurred.

2.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.8. Financial Instruments

The company has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

...CONTINUED

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Salonserve Hair & Beauty Supplies Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

2.8. Financial Instruments - continued

Classification of financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently at amortised cost using the effective interest method.

2.9. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.10. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.11. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.12.

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Share Capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

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Salonserve Hair & Beauty Supplies Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

2.13. Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non‑current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest‑bearing borrowings are initially recorded at fair value, net of transaction costs. Interest‑bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 15 (2024: 14)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 February 2024	11,381

As at 31 January 2025	11,381

Amortisation
As at 1 February 2024	474
Provided during the period	1,091

As at 31 January 2025	1,565

Net Book Value
As at 31 January 2025	9,816

As at 1 February 2024	10,907

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Salonserve Hair & Beauty Supplies Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

5. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Total
	£	£	£
Cost
As at 1 February 2024	3,000,000	256,351	3,256,351
Additions	-	6,925	6,925

As at 31 January 2025	3,000,000	263,276	3,263,276

Depreciation
As at 1 February 2024	240,000	228,342	468,342
Provided during the period	60,000	7,797	67,797

As at 31 January 2025	300,000	236,139	536,139

Net Book Value
As at 31 January 2025	2,700,000	27,137	2,727,137

As at 1 February 2024	2,760,000	28,009	2,788,009

6. Stocks

	2025	2024
	£	£
Stock	497,337	819,904

7. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	74,792	-
Prepayments and accrued income	35,351	11,250
Other debtors	400,007	1,094,218
Corporation tax recoverable assets	37,891	13,978
Director's loan account	66,581	-
Amounts owed by group undertakings	136,033	-

	750,655	1,119,446

8. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	159,563	176,169
Bank loans and overdrafts	145,608	145,609
Corporation tax	6,170	173,114
Other taxes and social security	5,268	60,245
VAT	73,845	-
Other creditors	72,248	72,709
Accruals and deferred income	43,922	7,584

	506,624	635,430

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Salonserve Hair & Beauty Supplies Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

9. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Bank loans	579,365	668,155

10. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	2	2

11. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2025	2024
	£	£
Not later than one year	5,366	8,486
Later than one year and not later than five years	494	6,554

	5,860	15,040

12. Related Party Transactions

At the balance sheet date, the amounts due to the director was £419 (2024꞉ due from £320,917).

At the balance sheet date, the amounts due from the Claire's Properties Ltd was £136,033 (2024꞉ £nil).

13. Ultimate Controlling Party

The controlling party is Ms C A Kettell, a director and shareholder of the company.

14. Charges

Lloyds Bank PLC registered a charge that contains a fixed charge over all fixed assets of the company on 29 July 2022.

Lloyds Bank PLC registered a charge that contains a fixed and floating charge over all assets of the company on 29 July 2022.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		9,816		10,907
Tangible Assets	5		2,727,137		2,788,009

			2,736,953		2,798,916
CURRENT ASSETS
Stocks	6	497,337		819,904
Debtors	7	750,655		1,119,446
Cash at bank and in hand		68,479		120,634

		1,316,471		2,059,984
Creditors: Amounts Falling Due Within One Year	8	(506,624 )		(635,430 )

NET CURRENT ASSETS (LIABILITIES)			809,847		1,424,554

TOTAL ASSETS LESS CURRENT LIABILITIES			3,546,800		4,223,470

Creditors: Amounts Falling Due After More Than One Year	9		(579,365 )		(668,155 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(6,722 )		(6,722 )

NET ASSETS			2,960,713		3,548,593

CAPITAL AND RESERVES
Called up share capital	10		2		2
Other reserves			1,090,974		1,090,974
Profit and Loss Account			1,869,737		2,457,617

SHAREHOLDERS' FUNDS			2,960,713		3,548,593